Refer to Solved Problem 17.1. Use a chase production strategy. Yet, the number of full-time employees hired

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Refer to Solved Problem 17.1. Use a chase production strategy. Yet, the number of full-time employees hired or fired is restricted to 5 employees per month. During peak demand periods, the company has the option of using overtime to meet any excess demand. Overtime cost is $300/unit. Hiring and training an employee costs $400. The per-employee layoff cost is $300. The current workforce size is 25 full-time employees. Compute the total cost of this plan.


Data from Example 17.1

DEMAND (IN PAIRS OF UNITS) MONTH MONTH DEMAND (IN PAIRS OF UNITS) July Jan 9,000 1,000 7,000 5,000 Feb Aug 1,200 Mar 1,6

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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